30 Years Of Hyundai In India: 5 Things That Didn't Go Well, 5 That Did

Hyundai Motor India was incorporated in the country on May 6, 1996. In simpler words, today, but three decades ago. In the last three decades, the Korean carmaker has grown into one of the biggest automotive brands in the Indian market. From the Santro changing the hatchback space in the late 1990s to the Creta becoming the benchmark for mid-size SUVs, Hyundai has played a massive role in shaping buyer expectations in India. But while the journey has been filled with success stories, the company has also faced regulatory scrutiny, customer complaints, and increasing market pressure in recent years. Here's a look at five things Hyundai got right in India, and five that it couldn't.

Things That Didn't Go Well

1. Spare Parts Monopoly Controversy

One of Hyundai's biggest regulatory setbacks came in 2015, when the Competition Commission of India imposed a Rs 420 crore penalty over anti-competitive practices linked to spare parts distribution.

The allegations revolved around restricting access to genuine spare parts and limiting independent garages from carrying out repairs. The case became one of the biggest anti-competitive rulings in India's automotive aftermarket industry.

The allegations included:

• Restricting access to genuine spare parts
• Limiting independent garages
• Forcing customers towards authorised service networks

2. Dealer Discount Control Scrutiny

In another major regulatory setback, Hyundai was penalised nearly Rs 87 crore over alleged dealer discount control practices. Regulators observed that the company had systems in place that influenced how much discount dealerships could offer customers.

The issue raised larger questions around pricing transparency and dealer autonomy.

The CCI observed that Hyundai:

• Controlled dealer discounts
• Restricted pricing flexibility
• Penalised dealers deviating from guidelines

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3. Losing Ground In The Domestic Market

For years, Hyundai comfortably held the position of India's second-largest carmaker. But FY26 highlighted a changing market reality. The fall is big, if anything, as the automaker has now moved down to the fourth position in FY26. A big point of concern here is the poor and declining demand for all Hyundai products, except the Creta.

Mahindra's aggressive SUV strategy and Tata Motors' rise in key segments have significantly intensified competition. After all, the market today is far more competitive than it was a decade ago.

For years, Hyundai comfortably held the position of India's second-largest carmaker; however, FY26 highlighted a major shift:

Photo Credit: Image source: TeamBHP

4. White Paint Peeling Complaints

Over the years, certain Hyundai owners reported issues related to white paint peeling on some models. The matter gained traction across online forums and owner groups. To Hyundai's credit, the company later introduced extended support measures and warranty coverage for affected customers.

Owners reported:

• Paint peeling issues
• Surface quality deterioration
• Premature paint wear in some cases

5. IPO Debate And Investor Concerns

Hyundai's India IPO generated significant buzz, but also criticism. The issue was largely structured as an Offer For Sale (OFS), meaning the proceeds primarily went to the parent company rather than directly funding Hyundai India's future expansion plans.

Many market observers felt the IPO lacked a strong India-focused growth narrative, especially during a period when the company was facing tougher competition in the SUV and EV space.

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Things That Made Hyundai What It Is Today

1. Santro Changed India's Small Car Market

When Hyundai launched the Santro in 1998, the Indian hatchback market was still dominated by basic, utilitarian cars. The Santro's tall-boy design, refined petrol engine, and premium cabin instantly stood out.

For many Indian families, it became their first modern hatchback experience. So much so, by 2004, Hyundai sold over 1 million units of the Santro in the Indian market.

2. Made Feature-Loaded Cars Mainstream

Hyundai arguably understood Indian buyers better than most rivals when it came to features.

The company played a huge role in mainstreaming:

• Touchscreen infotainment systems
• Connected car technology
• Ventilated seats
• Panoramic sunroofs
• ADAS features in affordable segments

Today, buyers expect many of these features even in mass-market cars.

3. Creta Redefined The Mid-Size SUV Segment

Launched in 2015, the Hyundai Creta completely transformed the mid-size SUV market.

Even today:

• Creta remains among the segment leaders
• Hyundai has sold over 1.2 million units of the SUV
• The model has retained strong demand despite intense competition

Very few cars in India have enjoyed this kind of long-term dominance. The Creta is currently sold in its second-generation avatar, and it continues to enjoy a strong demand. It certainly made an impact in the Indian automotive industry. The company is working on a new-gen model, which we could see either by the end of this year, or sometime next year.

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4. Hyundai Turned India Into An Export Hub

Hyundai's Chennai facility became one of the company's most important global export bases. The automaker has shipped over 3.9 million cars to more than 150 nations from India, including markets like Saudi Arabia, South Africa, Mexico, Chile, and Peru. A wide array of models is exported from India, namely Verna, Grand i10 Nios, and Aura.

Cars manufactured in India are exported to:

• Latin America
• Africa
• Middle East
• Several global markets

5. Hyundai Elevated The Ownership Experience

Beyond products, Hyundai also played a major role in making mass-market car ownership feel more premium in India. At a time when dealership and service experiences were still fairly basic across the industry, Hyundai focused heavily on creating a more polished customer journey. The company invested in:

• Better dealership experience
• Longer warranty packages
• Cleaner showroom environments
• Modern service infrastructure

For many buyers upgrading from entry-level hatchbacks, Hyundai cars felt aspirational not just because of the product, but also because of the overall ownership experience the brand offered.